Beverly Works for a Large Publicly Traded Company and Regularly

question 42

Multiple Choice

Beverly works for a large publicly traded company and regularly receives incentive stock options as bonuses.In the current year,Beverly exercises options to purchase 1,000 shares at $48 per share when the market value is $72 per share.What is Beverly's AMT adjustment from the exercise of the options?

• A)$24,000.
• B)$48,000.
• C)$72,000.
• D)None of these.

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Definitions:

Aldotetrose

A four-carbon sugar (tetrose) with an aldehyde group as its carbonyl functional group.

Aldohexose

A six-carbon sugar with an aldehyde group at one end.

Fischer Projection

A two-dimensional drawing style used to represent three-dimensional molecules of carbohydrates and amino acids.

D-Glucose

A naturally occurring form of glucose, a simple sugar that serves as a primary source of energy for living organisms.